World Library  
Flag as Inappropriate
Email this Article

Indonesia Stock Exchange

 

Indonesia Stock Exchange

Indonesia Stock Exchange
Bursa Efek Indonesia
Type Stock exchange
Location Jakarta, Indonesia
Coordinates
Founded December 1912
Key people Ito Warsito (CEO)
I Nyoman Tjager (Chairman)
Currency IDR
Website .id.co.idxwww

Indonesia Stock Exchange (Indonesian: Bursa Efek Indonesia) is a stock exchange based in Jakarta, Indonesia. It was previously known as Jakarta Stock Exchange (JSX) before its name changed in 2007 after merging with Surabaya Stock Exchange (SSX). As end of 2012, the Indonesia Stock Exchange had 462 listed companies with a combined market capitalisation of $426.78 billion.

Contents

  • History 1
    • Merger 1.1
  • Regulation 2
    • Trading hours 2.1
    • Lot and tick price 2.2
  • Stock Indices 3
  • Figures 4
  • See also 5
  • References 6
  • External links 7

History

Originally opened in 1912 under the Dutch colonial government, it was re-opened in 1977 after several closures during World War I and World War II. After being reopened in 1977, the exchange was under the management of the newly created Capital Market Supervisory Agency (Badan Pengawas Pasar Modal, or Bapepam), which answered to the Ministry of Finance. Trading activity and market capitalisation grew alongside the development of Indonesia's financial markets and private sector - highlighted by a major bull run in 1990. On 13 July 1992, the exchange was privatised under the ownership of Jakarta Exchange Inc. As a result, the functions of Bapepam changed to become the Capital Market Supervisory Agency. On 22 March 1995 JSX launched the Jakarta Automated Trading System (JATS). In September 2007, Jakarta Stock Exchange and Surabaya Stock Exchange merged and named Indonesian Stock Exchange by Indonesian Minister of Finance. The current location of the Indonesian Stock Exchange is located in the IDX building in the Sudirman Central Business District, South Jakarta, near the current site of the Pacific Place Jakarta.

Merger

Both Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) merged to form a new entity "Indonesia Stock Exchange" (Bursa Efek Indonesia). After the merger, the new entity has seven directors.

Regulation

Trading hours

(All times are based on the Jakarta Automated Trading System (JATS))

Prior to 2014, the index opens from 08.00-17.40, divided into the following:

  • Pre-opening trade (07.30-08.00)
  • 1st session (Monday-Thursday 08.30-12.30, Fridays 08.30-11.30)
  • Lunch break (Monday-Thursday 12.30-13.30, Fridays 11.30-14.00)
  • 2nd session (Monday-Thursday 13.30-17.00, Fridays 14.00-17.00)

With effect from 17 April 2014, the market will open from 08.00 to 17.40, with the following breakdowns:

  • Pre-opening trade (07.45-07.55)
  • 1st session of all trading (Monday-Thursday 08.00-12.30, Fridays 08.00-11.30)
  • Lunch break (Monday-Thursday 12.30-13.30, Fridays 11.30-14.00)

2nd session of trading (Monday-Thursday 13.30-16.50, Fridays 14.00-16.50) consisting of:

  • Regular trade (Monday-Thursday, 13.30-17.30, Fridays 14.00-17.30)
  • Negotiation trade (Monday-Thursday, 13.30-17.30, Fridays 14.00-17.30)

Furthermore, the closing session is divided into two:

  • Pre-closing trade (17.30-17.35)
  • Post-closing trade (17.40-18.00)

The final price shaping occurs at 17.40.

The plan to open earlier trading is to accommodate trading hours which fund managers setting strategies based on Singapore and Hong Kong stock exchange, as well as brokers from Central and Eastern Indonesia which makes up 5% of the brokers all around the country.[1][2] In November 2012, IDX has got approval from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) for its plan to start trading 30 minutes earlier and a pre and post closing session to avoid price manipulation.[3]

Lot and tick price

After delay, the new lot and tick price transactions initial on 6 January 2014, one lot is only 100 shares (lowering from 500 shares) and price movements have only 3 groups:[4][5]

  • below Rp500, the tick price is Rp1
  • from Rp500 to below Rp5,000, the tick price is Rp5
  • same or above Rp5,000, the tick price is Rp25

Stock Indices

Two of the primary stock market indices used to measure and report value changes in representative stock groupings are the Jakarta Composite Index and the Jakarta Islamic Index (JII). The JII was established in 2002 to act as a benchmark in measuring market activities based on Sharia (Islamic law). Currently, there are approximately 30 corporate stocks listed on the JII.[6] The FTSE/ASEAN Indices were launched by the five ASEAN exchanges (Singapore Exchange, Bursa Malaysia, The Stock Exchange of Thailand, Jakarta Stock Exchange, and The Philippine Stock Exchange) and global index provider FTSE on 21 September 2005. The indices, covering the five ASEAN markets, are designed using international standards, free float adjusted, and based on the Industry Classification Benchmark (ICB). The indices comprise FTSE/ASEAN Benchmark Index and FTSE/ASEAN 40 tradable index. The FTSE/ASEAN 40 index is calculated on a real-time basis from 9:00 a.m. and the closing index is calculated at 6:00 p.m. (Singapore time). The FTSE/ASEAN benchmark index is calculated on end-of-day basis.

Besides Jakarta Composite Index and JII, IDX also has 4 more types of index, namely Individual Index, Sector Stock Price Index, LQ 45 Index, Main Board and Development Board Indices.[7]

At 12 May 2011 Indonesia Stock Exchange officially launched a new Indonesia Sharia Stock Index (ISSI), which comprises 214 Indonesian stocks which have been screened by the Majelis Ulama Indonesia (Indonesia Ulema Council).[8] Fatwa Number 80 from Indonesia Ulema Council is expected to make public no longer have any doubt to make sharia investment in the capital market to eventually increase the number of the domestic investors in the Indonesia Stock Exchange.[9]

Figures

At end of 2010, the capitalisation is Rp.3,100 trillion and 26 percent of it are 17 state-owned companies listed among 421 companies listed. The greatest company capitalisation is also state-owned company: Telkom (Code: TLKM) with Rp.161.2 billion. 7 of 20 greatest amount of capitalisation are also state-owned companies.[10]

In 3 June 2011 there are 344,279 local investors registered at the IDX Custodian (KSEI).[11]

As of the end of 2011, foreigners owned 60 percent of publicy traded stock, but throughout the year domestic traders dominated trading with a share of 64.5 percent.[12]

See also

References

  1. ^ http://www.thejakartapost.com/news/2011/02/16/idx-set-“rehearse”-new-trading-hours.html
  2. ^ http://english.kontan.co.id/v2/read/1305187821/67343/IDX-to-introduce-longer-trading-hours-mid-year
  3. ^ "IDX will start trading day earlier in January". 2 November 2012. 
  4. ^ "IDX plays it safe in election year". 18 October 2013. 
  5. ^ "Awali Aturan Baru Jumlah Lot Saham , IHSG Dibuka Melemah". 6 January 2014. 
  6. ^ Asean Law Association, Indonesian Legal System, 2004
  7. ^ http://www.idx.co.id/MainMenu/Education/IndeksHargaSahamObligasi/tabid/195/lang/en-US/language/en-US/Default.aspx
  8. ^ http://www.thejakartapost.com/news/2011/05/13/new-sharia-index-launched-boost-liquidity-investor-base.html
  9. ^ http://waspada.co.id/index.php?option=com_content&view=article&id=193404:indonesian-stock-exchange-launches-sharia-index&catid=30:english-news&Itemid=101
  10. ^ http://www.antaranews.com/en/news/1293798817/state-companies-control-26-pct-stock-market-capital
  11. ^ http://waspada.co.id/index.php?option=com_content&view=article&id=197627:more-local-investors-needed-at-indonesian-stock-exchange&catid=30:english-news&Itemid=101
  12. ^ "IDX unveils ways to be SE Asia's largest stock market". 13 February 2012. 

External links

  • Otoritas Jasa Keuangan Republik Indonesia
  • PT Bursa Efek Indonesia
  • PT Kliring Penjaminan Efek Indonesia
  • PT Kustodian Sentral Efek Indonesia
  • PT Penilai Harga Efek Indonesia
  • Indonesia Stock Exchange
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from Hawaii eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.